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Definition: OTT stands for over-the-top, and it refers to the delivery of content and services over the Internet.
Binge-watching on Netflix, Prime, and Disney+ is how we relax nowadays. But the OTT industry is not limited to binge-watching web series anymore; it is growing across various industries. According to one report by Statista, the projected revenue in the OTT video market worldwide is estimated to reach US $316.40 billion by 2024. Most know what OTT is: an over-the-top technology from the traditional cable or set-top boxes to the digital move to watching content over the internet. More than 700,000 hours of video content are uploaded to OTT platforms every single day, which is like 80 years of binge-watching.
But, OTT is not limited to just videos; it’s any content that is being delivered over the internet.
But, for this discussion, let's stick to video OTT. So, how does OTT work?
OTT is not about strangers’ things anymore; it's more than entertainment it’s about creating content and having full control.
Entertainment OTT
This doesn’t need much explanation; we are all guilty of binge-watching content. Entertainment OTT is the most popular type, thanks to Netflix, Prime, and the last season of Games of Thrones.
Marketing OTT
OTT is not limited to entertainment anymore; in fact, b2b businesses, EdTech companies, and SaaS companies are coming up with their own OTT platforms because creating a product is not enough anymore; it's all about building your audience. Creating your own OTT isn't the same as making videos and posting them online; you can do the same with YouTube or a video hosting platform, but OTT allows you to take full control of your platform from the design interface to monetization.
Creators OTT
YouTube's popularity can never be underestimated, thanks to all the videos creators make. Earning for YouTube is easier said than done. YouTube has an algorithm that supports the platform and not the creators. Earning for YouTube means giving more than 50% of your revenue to the platform. This is the reason why creators are leaving and creating their platforms to have full control over their platforms and monetization.
The biggest plus of having OTT is having full control over the monetization. You can try different revenue models and choose the one that works for you.
AVOD
AVOD(advertisement-based video on demand) is used by platforms like YouTube that let the audience stream as many videos as they want in return for having paid ads. Well, the audience doesn’t really mind having watched a few minutes of ads; this kind of video has a large viewership.
TVOD
TVOD, or Transactional Video on Demand, sometimes all the audience wants to watch is that one movie or series, and paying an entire catalogue for that one piece of content feels like a waste. In TVOD, the audience can pay for the content they want to watch. Google Play is one example of TVOD content.
SVOD
SVOD, or subscription video on demand, has the best revenue among other models. Most OTT platforms like Netflix, Prime, and HBO Max use this model. In SVOD, audiences pay once every month, quarter, or year and get access to all the content uploaded on that platform.
PVOD
PVOD or Premium Video on Demand is the latest concept in the OTT industry. After the covid, audiences prefer staying home and watching content rather than going to the theatre. This was when the platform came up with PVOD, a content is launched on the platform with a one-time fee for a few months before making available to all the subscribers, for instance, Disney+ launched black widow, both in theatres and not with extra fees, the plan worked and Black widow earned around $80 million from its theatrical debut, $60 million from Disney+.
FAST TV
FAST or Free Ad-Supported Streaming television is like a cable TV where you watch content with ads just over the internet. A few examples of FAST TV are: The Roku Channel, Pluto TV, and Peacock
By now, we know what OTT is, how it works, its types, and OTT monetization. Let’s talk about how to build your OTT platform.
The difficulty lies in the first step: determining whether to develop your platform from the ground up or opt for third-party infrastructure. This choice shapes the direction of your entire OTT venture.
Building an OTT platform from scratch provides the benefits of having total control over the service and the ability to customise it for niche markets. However, it comes with high start-up costs and complex technology needs, which can shift the focus away from growing the service to addressing technical challenges.
If you decide to buy, it allows for a faster time to market, enabling you to focus on growing your business rather than dealing with technology challenges.
Also, some third parties, like FastPix, allow you to have full control and customise the platform.
Launching an OTT platform requires time, money, and resources. It's important to decide whether to build your own platform or use a third-party service based on your budget and feature preferences. Your choice depends on whether you want to focus more on the platform or content creation and let someone else handle the technical side.
IPTV and OTT are different ways of watching videos. IPTV is like traditional cable TV, using a special box and a dedicated network. It's controlled but needs specific equipment. OTT, on the other hand, uses the internet for streaming and can be watched on different devices, like phones or smart TVs, without any special boxes.
• The OTT platform creates a direct consumer relationship.
• OTT reaches more users.
• Get control over the user experience and the brand image.
• Get control of your own analytics.
We’ve put together valuable insights in the form of blogs and guides. Check’m out
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